Friday, April 29, 2005

Social Security Idea

A caller to Brian Sussman's show on KSFO last night had what seems to be a good idea.

The proposal is to allow people of retirement age the option of continuing to work as long as they want, but tax-free. Since they are working, they would receive no Social Security benefits. Obviously this would not apply to any funds in a private account.

Since they weren't going to be paying taxes anyway, there's no negative impact on revenues. Employers gain experienced help at a bargain. Seasoned Citizens get a whopping raise. And even if only a few percent take advantage for a few years, it could go a long way toward offsetting the shortfall.

I'm not qualified to analyze the proposal in detail, but it intuits well. So I'm askin' ya: What do you think?


Blogger reliapundit said...

love it. and how soon can we LOWER the retirement age!

9:15 AM, April 29, 2005  
Blogger Alumino said...

But aren't there currently millions of people working past their "retirement age" *and* paying taxes into the system? All while receiving no SS checks? So now these folks don't pay taxes? And that is supposed to *help*? So a 70-year old CEO earning 7 figures doesn't pay taxes any longer but that will be ofset by a few folks working 3 more years at the florist?

I think Paul will be happy but Peter will be filing a police report on this one!

9:37 AM, April 29, 2005  
Blogger BigLeeH said...

The idea has considerable merit. The only objection that occurs to me is that it is mostly incompatible with the Fair Tax Proposal which I also support.

But since the chances of getting either are remote, the problems of getting both can be dealt with in the unlikely event they arise.

11:20 AM, April 29, 2005  
Blogger Ken said...

I'm not a big fan of maximizing the treasury department's rake on the economy, but it does seem like this would be a significant hit. Alumino's point about the marginal influence is a good one, and it also seems like it would be a very easy system to game. Someone who, for example owned a couple of rental houses, could simply hire themselves to manage the houses and draw the enterprise profits as salary, tax free. We'd also see a raft of contracts with deferred compensation. "Ok Bill, your salary is going to be $2K/month until April, 2018 when it'll go to $20K/month." Fewer rules + fewer exclusions + Lower rates = less gaming and a fairer system overall.

11:38 AM, April 29, 2005  

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